TY  - UNPD
A1  - Carroll, Christopher D.
A1  - Toche, Patrick
T1  - A tractable model of buffer stock saving
N2  - We present a tractable model of the effects of nonfinancial risk on intertemporal choice. Our purpose is to provide a simple framework that can be adopted in fields like representative-agent macroeconomics, corporate finance, or political economy, where most modelers have chosen not to incorporate serious nonfinancial risk because available methods were too complex to yield transparent insights. Our model produces an intuitive analytical formula for target assets, and we show how to analyze transition dynamics using a familiar Ramsey-style phase diagram. Despite its starkness, our model captures most of the key implications of nonfinancial risk for intertemporal choice. JEL-Classifications: C61, D11, E24 Keywords: Risk, Uncertainty, Precautionary Saving, Buffer Stock Saving
T3  - CFS working paper series - 2009, 14 
KW  - Risk 
KW  - Uncertainty 
KW  - Precautionary Saving 
KW  - Buffer Stock Saving
Y1  - 2009
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/6732
UR  - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:hebis:30-68339
ER  -